Jakarta (Antara News) - The rupiah is not likely to strengthen further against the US dollar on the back of Moody's upgrade of Indonesia's sovereign ratings last week because the upgrades had been factored in by the market earlier, Bank Indonesia senior deputy governor Miranda Goeltom said.

It was being "priced in when there was plenty of fund inflows," Miranda was quoted as telling reporters by XFN-Asia.

Goeltom was referring to the entry of foreign funds since late last year amid, helping bring up the rupiah from a four-year low of 11,800 per US dollar in August to 8,700/8,800 recently.

The rupiah has reversed its direction since last week on fears of hedge funds outflow due to increased prospects of another US interest rate hike.

Last Friday, Moody's Investors Service said it upgraded Indonesia's

ratings in light of substantial and steady improvement in government finances and sound record in fiscal management in recent years.

The rating agency said Indonesia's foreign currency country ceiling for bonds and the foreign- and domestic-currency government bond ratings were upgraded to "B1" from "B2".

The foreign currency country ceiling for bank deposits was upgraded to "B2" from "B3", while the local currency bank deposit ceiling and the local currency guideline remain unchanged at "Baa2".